CICC: Third quarter results are in line with expected underwriting profits, maintaining China Financial Insurance (02328)'s “outperforming the industry” rating

The Zhitong Finance App learned that China Financial Insurance (02328) released a research report saying that China Financial Insurance (02328)'s third-quarter results were basically in line with market expectations, and underwriting profits remained steady; the bank maintained a target price of HK$20.51 and the “outperforming the industry” rating.

The bank pointed out that net profit for the first nine months and the third quarter of this year fell 35.5% and 140% year on year, respectively, to 25.954 billion yuan and a loss of 6.330 billion yuan, which is basically in line with market expectations; net assets rose 3.7% from the beginning of the year to RMB 29.6155 billion. The original insurance premium income for the first nine months and the third quarter increased 1.7% and 2.6% year-on-year, respectively, to $450,501 billion and $122,972 billion. Among them, car insurance premiums continued to grow slowly. Non-car insurance premiums increased 3.2% and 6.8%, respectively. The growth rate of liability insurance was impressive. The growth rate of liability insurance was impressive. The first nine months and the third quarter increased by 12.7% and 17% year-on-year respectively.

CICC said that in the first nine months, the company's overall, car insurance and non-car insurance comprehensive cost ratios improved 0.3 percentage points, 0.5 percentage points and remained flat, respectively, to 95.8%, 94.3%, and 98%; affected by the catastrophe, the overall comprehensive cost ratio for the third quarter increased 0.6 percentage points year on year to 99.1%.

Due to stock market fluctuations and the high investment base for the same period last year, the total return on investment (non-annualized) for the first nine months fell 2.9 percentage points year on year to 2.5%. Despite being affected by natural disasters and capital market fluctuations, the bank believes that without changing the company's long-term positive business trend, it is still the choice for a stable allocation in the long term.